Top 5 and Bottom 5 of Q2 2012
By Nicole Giannopoulos
Many of the nation's largest retailers released their financial results for the second quarter of 2012 over the past several weeks, and companies that include Amazon, Ross Stores, Cabela's, Sears, Staples and GameStop were among those experiencing the greatest gains and biggest losses. Overall, the Q2 financial results show continued growth in the retail sector: all the retailers that made the top five demonstrated double-digit growth.
A major retailer, JCPenney, led the bottom five list with a decline more than 11 percentage points larger than the second-lowest retailer on the laggards list. JCPenney is going through a well-publicized and controversial overhaul of its pricing, promotional and merchandising strategies that has so far had a drastic impact on its quarterly results.
RIS News has gathered data on the net sales revenues for 32 retailers in a range of verticals and compared them with the figures for the same quarter in 2011, measuring the percentage change between them. Using this calculation, RIS has determined the top five and bottom five retailers in terms of percentage revenue change for Q2 2012:
Top 5 Retailers of Q2 (based on net sales for Q2 2012 compared to Q2 2011; six companies are listed due to a tie in third place):
Deckers Outdoor +13.1%
Ross Stores +12%
American Eagle Outfitters +11%
The top five retailers saw a few familiar names including Amazon, Deckers Outdoor and American Eagle Outfitters, who all made the list in Q1 (Amazon and Deckers also made the list in Q4 2011). Amazon continued to lead the top five with a 29% increase, generating revenues of $12.83 billion, while Deckers increased 13.1% to $174.4 million in revenues.
"We experienced better than expected sales trends in several areas of our business during the second quarter," stated Angel Martinez, president and CEO for Deckers Outdoor. "Sell-through of the UGG brand in our direct to consumer channel was higher than planned, highlighted by a 43.9% increase in e-commerce sales year over year and a 6.8% same store sales increase. With more than half the year behind us, I am pleased with how our organization has navigated through this difficult operating environment. We remain confident about the strength of our brands and their respective long-term growth prospects."
More than 20 of the 32 retailers recorded reported positive gains for the second quarter. Among those reporting double digit sales increases were Dollar Tree (10.5%) and Dick's Sporting Goods (10%).
Bottom 5 Retailers of Q2 (based on net sales for Q2 2012 compared to Q2 2011):
Office Depot -7%
Other retailers reporting losses for the quarter include Build-a-Bear Workshop (-5.3%), Limited Brands (-2.4%), Lowe's (-2%), Advance Auto Parts (-1.3%) and Kohl's (-1%). Q2's bottom five only found two repeats from last quarter, Office Depot (-7%), and JCPenney.
"We have now completed the first six months of our transformation and while business continues to be softer than anticipated, we are conﬁdent the transformation of JCPenney is on track," said Ron Johnson, CEO for JCPenney. "The transition from a highly promotional business model to one based on everyday value will take time and we will stay the course. This month we simplified our pricing, launched the ﬁrst of our new shops, and accelerated our marketing efforts to focus on brands, products and value. Early response to these efforts has been very encouraging. We continue to learn and adjust, and fully expect that our unique, specialty department store experience will drive JCPenney's long term success."
For related content: